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tv   Mad Money  CNBC  September 16, 2013 6:00pm-7:01pm EDT

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my final trade is not buying jim. i don't know where that came from. >> it's not buying gm. >> i'm mellissa lee. thanks for watching. meantime, "mad money" starts right now. . >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now! . >> hey, i'm cramer, welcome to "mad money." welcome to cramerica. other people want to make friends, i'm trying to make money. my job is not just to coach, teach, entertain, but the educate. call me. 1-800-343-doctor nbc. dow soared 119 points, s&p vaulting .475%.
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apple declined. therefore, it's taken the nasdaq down. was larry somers that horrendous for stocks? could he actually matter that much? no, but he sure is a catalyst. let me give you the setup and the reasons why the market loved the fact that larry somers is absolutely not going to be the next federal reserve chair. the only thing that stands in the way of higher stock proprietary prices here is, watch, the war between the president and republicans drains everyone. business gets crushed in the crossfire every time there is a player partnership. today when the president spoke, he admitted the economy took a real hit two years ago during the debt downgrade wrangling. we know the fiscal cliff discussion put business square on its back. we saw a return to good growth and then the sequester stalled the economy again. this linkage is amazing and it is so abysmal that we all know we have to sell when the president and congress are
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loggerheads. that's just what you do. it's imperically smart. the president couldn't be more divisive when he spoke about the upcoming negotiations over the debt ceiling budget deficit. he basically dared the republicans to shut down the government. of course, it would be a 50-50 shutdown, meaning the democrats would be at fault, too. i was agast how hard line the president was. he basically said we will shut it. it will be a miracle if we get a dole now. in the context, that vortex steps larry somers a. physical that has polarized everything and everyone in every place he's been. why? because he speaks his mind. heck, i mean, the guy is, he's lying a polar bear. that's how much he polarizes and that's how -- he is for the market. look, we all love honesty in real life. honesty is so not the best policy for a fed chief. no disassembling. we just don't want it in their face. we don't want it in people's face, particularly congress
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people t. chief has to go in front of congress to explain how the economy is doing and how the policies he puts in place balances pro job mandate. somers is faye mussily content shu with us of anyone whop disagrees with them. he usually says they're not smart. these hearings they could become a circus. they would create tremendous antipathy. how many congress people would he call sfupd? hou bo do, is that the representative from more ronville? matter what he could do. what would make for terrific theater. maybe president obama doesn't feel his life has enough drama in it. this guy is a drama man. we know someers wasn't happy with the current fed and made it known to the background of reporters. some people said isn't it ironic somers withdrew his nomination without knowing what he might have had to say about bernanke's policies? i don't think it was that much of a mystery. he had told nate he didn't like
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the bond buying bernanke was doing. he regarded it as in effecttual if not stupid. he could have said that's not true. let's understand, you don't get this kind of view from a guy out of then air. and the president and someers love this background to get the points across. so i think we have to presume somers would undo everything bernanke was doing. given that, during this period we had one of the greatest stock rallies in the history of the world under bernanke, any whiff of repudiation is terrible for the market. the combination of the background interviews, criticism of bernanke's policies, along with somer's bare china shop methods added up to a sense the great bull market would have run its course the moment somers got appointed. further, bernanke has a disciple. she's loved by so many economists and politician, smart, level-headed, janet yellen, the fed's current vice chair. she is a peace maker and a consensus builder. which is exactly what investors
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want. so the contrast is stark. now, i don't think that yellen will get this nod as it's a little hard to believe that any president who likes somers could also like yellen. those are worlds collided. but the fact is no matter who came ut in favor of yellen against somers, it didn't make any impact on the president. it's almost no one mattered other than the president, even though you read a confirmation process. it's even as if the democrats in the senate didn't matter. it was really strange. come on, you got to admit this is a strange one. it's palpable senator warren on the in the committee, that her view couldn't get through to the president. she a former harvard professor with fre respect. somers had to reseen from the presidency. he had disparageing remarks about the zlek intellecttual presidency. how could obama not have figured out he didn't have the votes for the guy. still you might ask, isn't this bigger than the relief over
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somers and the distraction he caused? the answer is yes, it is much bigger because of the way the stockmarket itself works. going into this weekend, many hedge funds i know had severe underwaiting in housing-related stocks or they were shorting them. these managers envision a one-two punch. first the fed meeting coming up, the feeling among the community is that if the fed didn't signal an aggressive taper, interest rates would go higher. if the fed were hawkish, that would hurt housing, too. so how do you lose being short housing in the second punch, larry somers, himself, if the fed didn't gap, the markets knew his appointment would. what an ideal short situation. let say you take somers out of the equation, then you lose that short protection. so putin hedge fund managers had to cover or buy in their housing related shorts, which is what happened at the opening, once they were finishing their buying, it went down the rest of the day. we got voracious buying in toll brothers, lennar, sherwin
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williams, lumber liquidators. so the short got spoiled by this preemptive resignation. but before we go overboard about somers, don't forget this market does have tremendous amount of underlying strength. we had a terrible tragic shooting in washington today. the type of incident that these people scared in speechless. a few years ago, i think this market would have tangledness. it didn't matter when obama made it really clear we're going to have another debt ceiling showdown within a month. we are off to the races led by every stock that have been hammered since interest rates started spiking. i'm not as sanguin as the markets. i fear chaos and dysfunction out of wauchlth given how horribly the market acted before, i don't know why you can possibly reach up today and buy stocks. boy was it ever wrong, not without a possible government shutdown, you don't want to be reaching for stocks. the knee jerk reaction today did make sense. the appointment of somers was
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the key to the market going lower. he was a bear's dream come through. his consideration was, therefore, a nightmare for the bears. so here's the bottom lean. in large part, hedge funds positioned themselves from the one-two punch of this week's fed meeting and seemingly appointment of larry somers. wrongly, somers was viewed as a one-man wrecking crew for the stockmarket. his departure from the scene, the bears lost their best friend and the bulls live to play again. brian in new york. brean. >> caller: yes. boo-yah, jim. >> boo-yah, brian. >> caller: i just wanted to get your take on intel. there was a lot of move on the stock last week. also, i'd like to get your thoughts on the company moving forward in the future. >> i think intel is a great company. i think it's an inexpensive stock. i will never tell you not to buy. i think they have smaller chips that can do quite well. i think it's not like the old days.
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it's not a great growth stock. it's got a good yield, a good balance sheet. and i think it's fine to buy. let's go to ryan in pennsylvania. ryan. >> caller: hi, jim, my question is first allegheny technology announcing the seam of their tungsten business. i want to know what that means in the short term. i want to know what you think about buying or selling. >> at&t was my stock when i started the show why? the tugsten and shortage of tugsten. it's a very strong met am. when they sold it, it took my breath away. even ati recognizes you can not have your stock flat for so long. atzy a good stock, though. we don't buy at 10%, it will pull back. now i like it. it is shocking, though, they sold this division. it was why the stock was propelled a few years ago. how about gal in florida. hey, jim, boo-yah from tampa, florida. my question is regarding stock
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ticker gol airlines, their new deal with delta, the gold cup and the olympics in a few years. the stocks latest rally. what is your opinion? should i ring the register? >> no, the brazilian market has been horrendous. i like delta. i can get behind u.s. air. i like continental airways. i cannot, the new continental. i cannot get behind gold. it is just too darn hard. >> this market is summer lovin' all right. loving that summer is out of the equation. sorry for your loss bears. >> coming up, boxing bucks. we're not talking mayweather, but cold hard cardboard. a major player snatched up a rival. its stock is surge on the deal, but where should you put your paper? cramer is in your cornerant later, ask for the best. cramer is looking back to get you ahead of the game. all week he's tracking down the market's top performers to find out which stocks could close out the rest of 2013 strong?
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from video ga imse to vacation, don't miss this list. plus, roi from rnr? upstart vacation company all the way offers travelers more breathing space for fewer bucks. but after surging 25% this year, is it time to give its stock a rest or could it have you living the sweet life? all coming up on "mad money.." 6 why .
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>> this morning we learned packageing corporation of america, the fourth largest paper company in america is buying boise, the sixth largest for nearly $2 billion.
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that's a premium. what grabbed my attention is the stock the acquirer, mind you, soared $5.88 for 10.7%. this is the enquirer. it seems to be happening a lot lately. the reason for this move, corporate is picking up additional capacity as well as uncoded free sheet paper. there should be synergies over the next three years. what really matters is that the transaction takes out. that's a huge deal in this space. two years ago, we saw something similar when they bought temple inland, a genius deal that caused its stocks to hire. the thing is, i would expect taking out one more competitor isn't good news for packageing corps, it's good for every other player.
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i have to tell you, while i like what they are doing, this deal made my sal rate is for international paper, a titan in the industry with 40% of the market share and a huge consal education in the industry. see, the paper is cyclical. it's still not where we want it to be. but in this industry, we care about the prices of paper and container board and demand is just one element of the pricey equation. you got to go back to economics 101. 'other part, if other component is supply. the individual companies have done a terrific job of managing their own supply and that's water caught costing a boost. international paper is shutting down the paper mill in courtland, alabama. it's a big move. this is a story plant, too. last month they closed down its mill in arkansas and it's taking
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on another 1% of our capacity. these are just the latest in a long loin of industry consolidation, a highly successful temple inland. it led to a real rationalization of space. it is working. international paper has implemented a series of price hikes and they're sticking. the price of container board is up $100 a ton over the last year. >> that is a gigantic move, ladies and gentlemen. an internet expected in the current quarter. this is the time to boy a paper company. i believe international paper is the best. why i pay. >> fabulous chairman ceo john feracci international paper is going through a massive transformation. since 2007, international paper has invested itself in 7 million acres of forestry. it shifted from paper to industrial packageing with the stronger division accounting for over half of their business. thanks, to these moves,
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international paper now has a much more sustainable earnings and most importantly cash flow profile and the company controls about a third of the north american conitarian board market. now, it's been two years, but they did a terrific job in integrateing with synergies coming in well above wall street's expectations. now i think the deal is really starting to bear fruit. specifically, the benefits of all these moves are now trickling down to shareholders in the form of cold hard cash. just last week, international paper announced a buyback, equivalent to 7% of the company's market cap. this is a meaningful buy back. not a charade. that's going to add more than 30 cents to international paper's po cents per share. they raised their dividend, bringing it up to these levels. remember for the yield alone, i believe this disribution boosts a different count one that management is increasingly confident about the future and
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also if the stock gets hammered pretty good, right? no wonder ip is less than it's 52 week high. i bet the stock isn't done going higher. international paper, it's well more international than the other guys. while 75% of the company's business is done in north america. the rest comes from overseas, including brazil, russia, india, chosen. they're opening up a lot more out there. they should benefit from the turn across the atlantic. you know i believe that term. the company last supported in july delivered an 8% earnings speed. that was thanks, to stronger than expected margins and printing papers. at 30% year over 84 container prices. beyond that, international paper plans to rake in $2 billion in free cash flow. this thing is a cash machine. right now the stock is trading just 11 times next year's earnings estimates. 15% long-term growth. that's kind of ludicrous, isn't it? >> yeah, that cheap. >> beyond that, international paper is trading a 7% before
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interest packs amortization basis. this is the best of breed to trade it a big premium. it should be trading to all the other container names. not a discount. so here's the bottom lean. i leak what's happening with the acquisition of boise. ing that should be good for the whole paper industry. because it takes out another competitor. pkg, while packageing corps is sort of in the news, ip is up less than a buck. that's wrong. i think best of breed ip is the one to. >> bye-bye buy. >> stay with cramer. coming up, best for the best. cramer is looking back to get you ahead of the gain. all week he's tracking down this market's top performers to find out which stocks could close out the rest of 2013 strong? from video games to vacation, don't miss this list. my customers can shop around.
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. >> certain stocks tend to become apoint inned as winners by the money imagic industry. around this time, many of the bears stop trying to bet against these stocks. sort of, ah, you can't boat 'em, join 'em attitude. pretty much any employment manager will bring them into weakness only to tell their clients, hey, we're geniuses. we owned it. as individual investors, you don't need to impress clients. we see the same thing happening every year right around now. so you can pry to profit from
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it. all this woke we will host a different sectors. the ones most likely to become apoint inned by wall street in the fourth quarter. you want to get ahead of that. which stocks? what huge winners are safe to buy weakness at least until year end? let's start with the consumer oriented names tonight. that group is up probably with the most of almost all groups. the best performing consumer stocks are netflix, up 230% year-to-date. best buy up 223%. game stop up 109% and trip adviser which has increased 73%. when hedge funds and mutual managers show the clients at the end of the year, they want to show these stocks. otherwise their clients will say, what are you thinking? how can you not own netflix you moron in? netflix is all about the revolution the way we consume media content. people want it when they want it. they just do. thanks, to them, this revolution will be televised. more than hbo, by the way. 8 international ones.
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domestic revenues were up 26%. that's accelerated. that's, well, i mean, that's actually their cash cow business. international revenue is up 155% every yeempl i think they're taking the world by storm, people. what has made netflix so successful? allowing them to bounce back from the $50 range over the $300 range now in three things. first, original programming. we talk about house of cards, hemlock growth. arrested development, orange in the new black. and because net flicks knows what people like to watch. they have been able to write programing incredibly popular. we know this, all the series have been renewed. how about that? you think the big bo he moth networks are able to do that? plus, netbook series, a record for internet tv. they've got some new children's programing, to give a subscriber another boost. a lot of syndication and ample high quality original series of
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their own. the second element of the company's success, it's essential for binge, i never heard of it until i heard it from reed hayesings the ceo. the bers are worried. i don't think that's an issue. the networks want old shows. they node that. so that new vowers can catch twup the more complicated tv shows that have become popular. as opposed to the one off comedies and dramas. you can't stop watching breaking pad. they put it on. i'll watch this interesting show. no, you need to go back. i'll watch the whole darn thing. the easiest way is via netflix. that's one dpl. i would insert something about breaking bad right here. i don't issue a spoiler, more importantly, i'm trying to catch my breath from last night another episode. finally, will is the international opportunity. right now, netflix has 38 million total subscribers. management thinks that can grow
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somewhere from 60 to 90 million fueled largely by international. so this stock has a lot of ways to go. the stock may be expensive on metrics. there is no denying that. there is nothing traditional about netflix. i can see it going a lot higher. sorry, at herb grown berg on twitter. as many money managers are betting against it, they got to low in the towel. next stop, those are controversial stocks. best boy. best boy, the total back from the dead stock. they have one of those series about it. they have all kind of vam pires f. best buy vampire. we know these back from the dead names are power. . okay. it's a great theme a. year ago this company had been written off for amazon, people can check out for buying online. since then, best boy aggressively turned itself around, hugely, pruneing away unprofitable stores, turning some of the worst stores no warehouses to help move inventory. my one in jersey city is
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sparkleing it is so fabulous. now, the company has a new lows on life, partly because of management efforts and consumers shifted expenditures towards hard goods that best boy specializes in and away from amorale. how about game stop? the largest video game retailer out there. boy, i didn't get this one right, poem. this rally is about a brand-new gaming cycle. two new platforms are being watched. sony another play station 4 and microsoft's xbox one. microsoft never screwed up xbox. these new console launches are huge for game stop. we haven't seen one of these big, big cycles in years. now we get two huge ones within weeks of each other. sony grew by 31% in 2006. first year of xbox 360 microsoft hardware and software grew by a staggering 59%. i think game stop should have a better fourth quarter and better 2014 and 2015, thanks to sony and microsoft and wall street,
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clearly agree grows with me. plus, it's worth noting that game stop has kept it togeth togetherwhile waiting for the consoles to arrive. they have then straight quarters of negative same store sales, but over those same nine quarters, game stop margins have expanded. it's hard to believe. the company is ruining discipline, kept the costs down. if game stop can do that well when business is slow. imagine how strong the company will be when business picks up a month from now. the 10k is still cheap. 14% long growth rate. get out of that outer wall. get in gme. finally, trip adviser. this travel you said is building up a better mouse trap one for social media and mobile. wow, how many have that? trip adviser is unadvised information for travelers. 100 million reviews and opinions. take it from me as a part-time inn keeper and owner of new jersey, trip adviser's reviews
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can make you or break you. the site makes its window via advertisements. mostly sold to online travel. it was spectacular. caused the stock to work from 60 to 80 in mid-august. the reason it pulled back is the end of the simmer was bumpier than expected. they have a lot of room to fwroe. it's a secular advance, people t. pullback gives you a chance to boy it at a less inflated price. 9% growth rate is not cheap. here's the bottom loin. as we head into the end of the 84, you want to load up on these apoint inned names. let's go over them again. it's netflix. best boy, trip adviser. it's game stop. >> that will keep on winning thanks to the federal government nicks of the money management business. at least until the end of the 84. stay tuned tomorrow for a whole new set of apoint inned players from another winning sector. carmen in connecticut. carmen. >> caller: thank you, jim, thank you for taking my call. boo-yah. >> my pleasure.
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caller last week i bought a long term hold on genco. i decided to take profits on friday ahead of the fed. my question is, with china and europe improving, is it a good time lou for the get into shipping for a long-term investment and, if so, which company do you like and what do you think of don't na shipping? >> diana shipping happens to be my favorite. it is best of brodie. they have had, carmen, a joy gantic move. you kolgd argue, wait a second, you missed the move. but i agree with you with longtime trade. it's a good long-term trade. i would own or buy the stock. richard in north carolina. richard. >> caller: hey, jim. how are you doing? >> all right. chief, what's up? >>. >> caller: i want to thank you for helping us all out here. i have a gentleman on regeneron. how would i evaluate or how would you evaluate its pipe loin and what do you think would be future approvals of the drug that they are running now. >> first i got to tell you, this
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is an amazing stock. i mean, if you take a look at stock that hit an all time high today, it's up from 5 when we first had let on to 294, but it does have some extraordinary drugs in the pipe loin, including an anti--cholesterol drug that can be used for millions of us who cannot take the statins, the lipitors. they have a lot of side effects. this drug does not have the side effects. it take the whole shooting match. i'm here to help you think like the big guys. because i used to be a big guy. i used ob about an inch-and-a-half tall. i used to slink. those are the uns with for the year end in this discretionary consumer group. netflix, best boy, game stop, trick adviser. i'm blessed owning them. any q1 of these until 84 end. stay with cramer. don't move,lightening round is next.
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. >> i want to start you off with a thank you. you know i love hearing from you whether it's at jim cramer on twitter or calling you into the show. it helps me get a better understanding of what's going on across america. mark in santa cruz, california, runs an auto are pair shop and wrote to tell me you things are picking up from his area. he sent along this boo-yah license plate as a gift to intralt, are you ready? our 2,000th episode. i will show this baby off in the set. thank you. i can't say enough. i've come out here these past 2,000 shows forbe you, home gamer and so after the millions of questions you've asked me, now i have one for you. why do you watch "mad money"? show me, tweet me at jim cramer
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hashtag mm y-2k send a message to the "mad money" facebook page or send us buying at "mad money" cnbc. we thank you. and now, it is time, it is time for thelightening round on cramer's "mad money". >> buy, buy, buy. >> sell, sell, sell. >> when you hear this sound, then thelightening round is over. are you ready, ski daddy? it's time for the lightning round. we start with paul in california. paul. >> jim, boo-yah. >> boo-yah, paul. >> what do you think about strategist? >> strategist did a gigantic secondary. you have to wait for it to get di vested. i do like 3d companies. >> that is my favorite 3 the so everybody knows. tom in michigan. tom. >> caller: hi, jim. >> hi, tom. >> caller: i sold wendy's and bought more rite aid down that
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is wise? >> rite reports this woke, i think that is fine. i wish you hadn't sold wendy's. i think that is really terrific. if it comes down, buy it back. let's go to ray in michigan. ray. >> hello, really enjoy your show and comments. >> thank you. >> say, a new ideal this year, gyan. >> the optical situation i like is sienna. not kyan. i will work on cyan to be sure. jim in north carolina, jim. >> caller: thank you, in north carolina. we like it here. we are locking to put some of their gold to work in an animal health firm recently spun off from pfizer, the stock still moves. >> so ennice is a great company. that's a very fast growing part
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of the health care business. i really like your idea. let's go to doug in virginia. doug. >> hey, jim, great show,man. >> thank you very much. >> thanks for all you do. listen, my question is about sienna. it's been hitting 52-week highs each of the last few days. i want to get in. i'm afraid it's too high. should i wait? >> no, it's not too high. i would boy half. don't buy it all at once. sienna is really on fire. it is an amazing story. >> let's go to rory in colorado. >> cramer. it's good to talk to you. >> water up? >> do we like -- >> i don't see this coating doing well. it nodes to make an acquisition. >> that is a bummer that stock. let take one more, dennis in new jersey. dennis. >> hey, jim, greetings, wildwood, new jersey. >> how about cape may, that's my stopping points. go ahead.
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>> it's great. i want to know about igt. kwhats the deal on that? >> these casino companies are flush. they boy igt equipment. this is a stock that i got to do a segment on. i cannot believe how strong it is. note to ted and nick colorado igt. let's do some work. and that, ladies and gentlemen, is the conclusion of thelightening round. >> coming up. roy from r & r. upstart vacation company home away offers travelers more breathing space for fewer bucks but after surging 25% this year, is it time to give the stock a rest or could it have you living the sweet life?
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>> is it time to buy home away the online player, the largest vacation rent also. i have always been a fan since it became public. websites are a terrific way to book a home or a room. it became public two years ago.
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it was above 40 and xam back to the low 20s. now it's at $32. however, something is about to change at this company that could put the stock on i think a more permanent positive trajectory. ref nows come from listing fees. a pretty good deal, actually. the company will list your represental property. the problem is it makes it tough from enkrosses in in fact, pass along price hikes. now they are in the process of rolling out a pay per booking model. where they simply take an 8 to 10% cut of every booking they built and its high flying stock. which is why we got to check in with the co-founder and chairman of home away. everyone in the business loves him. he's got to learn more about his company and where he is headed. welcome to "mad money." thank you. >> thank you. >> you know, i have a lot of venture capital friend who were good friends of yours and they tell me you really revolutionized the industry.
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>> well, we're in the middle of it. baseball anology 4th or 5th inning at this point. >> isn't it try you that before you came in, there was, you were a part of this shared economy, where people had this dead weight property that they never thought they could ever monetize. >> i don't consider us as a shared commitment we're dealing with a business 100-years-old in europe. you rented a place on the beach. you rented a place to go skiing. everybody has done that. what we're trying to do is take this big business. like an $85 billion market and bring it online and make it more efficient. we didn't invent the vacation rental industry. >> at the same time someone who used the product. i never thought i could without hiring a property manager do it myself. i think that's ref lougsary. >> it sure is. our average customer makes $28,000 a year. they pay under $400 for doing that. it's a very good value. >> now, why the change in to make it so it's per booking? sample yes, so not a change, necessarily. >> you can do both.
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>> subscribers love the business. in fact, when we pom our existing subscribers. 97% of them say no interest in that. however, you know, if you look in the u.s. and europe, there is about 7 million people who rent their homes today. about half of those rent them for 16 weeks or more. that's our core customer. people make a lot of money doing this. there are millions of people who might want to rent out a few weeks a year to pay their bills, to pay tear taxes. our subscription price is $400 bucks to a thousand bucks. they don't know how the site will perform. they have no idea if they will make $28,000. really this move for a pay per booking more than anything else will open up a big market of people coming to try the site. i think a lot of people will hefr then move over to subscription. it's a great cash flow business. the investors love it sample when you guys came public. there was an expectation, one of the social medias came back at a hot time. i think that you, for some reason, you got like goes like this banc of america, merrill
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lynch goichlt he hates your stock, he says do you to travel mob, organic revenues flowing 100 basis points, they can underperform because of the christian metrix. i don't get it. everything that i think is strong he says is weak. >> yeah, i don't get it either. >> that core subscription business is still a great business. worry growing about 20% a year. i do think the company will see acceleration. we currently with our subscription business, our take rate is 2-3% of revenue. in this new business it will be 8 to 10% of ref now. >> that will be a big ig noticer. >> where are we in rolling it out? sample what we told everybody is we are beta testing it in q 3 and roll it out in q4. so that's the schedule and we're going to 66 with it. >> should i be worried? i know in the august meeting that you had, you said it's beta, i'm getting nervous perhaps it's not going to be ready. >> no, you team is great at
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getting stuff out. that i will be on this as well. >> how about advertise something. >> we did super bowl advertising. >> i remember. what happened, you decide you are don't need snit. >> you know, we did it to build awareness for the company. one of the things that's frustrating at home away. millions of vacation a month are being taken on this country. only about 25% of the population knows who we are. so we did do super bowl ads. we found we were able to pike the brand. unless you have enough money to be strong in tv, maybe 50, $70 million a year, it's not really worth it. we now focus our energies on good old fashioned wet marketing. we get a third of our traffic from seo. we are good at that. we get a third of our traffic from paying for scm. we have a huge database now travelers. every time somebody comes to our site and films out a form to book a house. we take that information and put some in the database. you can opt out.
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but we have 35 million families now who have used home away. it's like this tremendous e-mail marketing database to go back to people. you might know you went skiing last year ins apen. at that appropriate time, you can say, how about jackson hole? we have a big program. >> give us a little temperature of the economy. do you see people traveling more? i mean, i've always felt that your site offers a bargain. so i wonder how much the value, the number of people who were coming is spiking because it's perceived as a bargain. >> so it's a tremendous value relative to family or a large group. so what we have seen and every year we study this, is a big shift from hotels into vacation rent also and b & bs and properties like that. that's been pretty tremendous to watch. so we've seen growth well beyond our growth in properties, actually, every year sense we have been in business. 20s, 30% per year. >> i have been following your company from before it became public. i was always surprised.
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business is rampant. that's terrific. that's the co-founder and chairman of home away. i think this stock before they change that, the business model is a great business opportunity. stay with cramer. coming up, the world after lehman. it's been five years since the largest bankruptcy in u.s. history triggered a near complete economic collapse. tonight, what's changed? and the change that still needs to come. cramer sounds off. ♪
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. >> if i see one more person writing or talking or blogging that mug changed for the better sense lehman brothers and we're still in dangerous territory i will scream. if one more person says we're still in the too big to fail embargo. i will be tempted to rip that person's lungs out metaphorically speaking. i don't want to rehash, it was a mistake. the feds should have done something. things were happening. two real suitors. the box were okay. it collapsed. another victim of the endless bloef that housing could never decline. so why don't we just say two out of three ain't bad in if the repulsive idea that nothing, this is so nothing has been done to improve the situation. >> that is what i find outrageous. first the banks are forced to raise a level of capital that's exstrortdnary. i can't believe they western
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able to battle the treasury department and the feds to top the solution. plus all banks had to do is send a message. you aren't in charge anywhere. the regulators are. banks that were swinging around other peoples capital, they've stopped doing so. the big investment is dramatically reduced to leverage, to. it's been cut back from outrageous buying of debt. it just isn't happening. it doesn't. do some homework. critics refuse to do the homework. the stockmarket does well. any company that borrows, is treated like global goes down t. idea that the banks are so thinly capitalized as they were back then five years ago, it's ignorant and it's stupid. who cares if the banks are too big to fail. what matters is they are too well capitalized to fail in the first place. second things are much less omake than the meltdown. it's true the banks have been
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able to sometimy over the rate hidden and that is horrendous. the president should get involved. like he did some other stuff. that's the biggest weakness in the system. it doesn't enough to make me believe the collapse could happen all over again. one of the reasons why the economy isn't stronger is that the banks fear the regulators. they're afraid. they keep the capital indoor, keep the regulators at bay. plus, banks don't keep mortgages on the books at all. they sell them to fannie mae. lock, you want to fear something, fear the european banks. regulators have no spine over there. we're much more tougher and secure. yes, i'd like to see jail time. they got away with murder. >> that makes the banks more likely to commit fraud. not a good thing. the u.s. attorney didn't do the job. but i put all these negatives out there so you won't say i missed it. all right. with the justice department, i can't tell them what to do. all of the banks are rained in
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by the amount of capital the banks now need to keep and the ferocious ways that regulators are examineing the box really makes a difference. not to mention all the local there for every source of non-traditional revenue. huge behavioral changes coupled with dramatic increases in capital are the legacy of what happened five years ago. that's precisely what's needed. everyone accepts if you have those two things to occur, now we have them, it doesn't seem to matter. they want too much. i think tim geithner an ben bernanke performed magnificently, a major updprad of the security of the system. the systemic issues are gone. plus the government now is the emergency powers take over the banks that fail. you want naturalization? give me a break. things are better, stronger, more sustainable than they have ever been. time to stop talking and admitting the fed actually got it right. you know what, we actually owe them a ton of gratitude for all they've done to save the city council drels and cads who got
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us into this yam in the first place. stay with cramer. a special edition at the washington navy yard, thrown dead, including the shooter. were others involved? what could possibly be the motive? all that up next on "the kudlow report." hero: if you had a chance to go anywhere in the world,
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but you had to leave right now, would you go? man: 'oh i can't go tonight' woman: 'i can't.' hero : that's what expedia asked me. host: book the flight but you have to go right now.
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hero: (laughs) and i just go? this is for real right? this is for real? i always said one day i'd go to china, just never thought it'd be today. anncr: we're giving away a trip every day. download the expedia app and your next trip could be on us. expedia, find yours. . >> remember, there was this
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vacuum apple went up 80 points. carl icahn tweets so to speak. they didn't get the china dole and didn't have the price low enough for the cell phone. so it makes total sense that it cools back. okay? it's just natural. i promise right here on we can confirm that the deceased shooter from this morning has been identified at 34-year-old aaron alexis of fort worth, texas. we have post the photographs of mr. alexis on our website,, and we ask anyone with information about him to contact us at 1-800-call-fbi. no piece of information is too small. >> a terrible shooting at the d.c. navy yard leaves 13 people dead and many more questions still unanswered. who is aaron alexis? what was his motive? is there anotherot


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